The Aave DAO, the organization in charge of the Aave DeFi protocol, approved the creation of the GHO stablecoin.
The Snapshot vote, which ended today at 06:00 a.m. EDT, passed with almost unanimous approval from the DAO. Data from the voting page shows DAO members with a total of 501,000 AAVE tokens were in favor of the proposal. This amounted to 99.99% of the total votes cast during the three-day polls.
Aave DAO enhancement protocol will be used to implement the formation of the GHO stablecoin
After the voting, a new Aave enhancement protocol will be used to implement the formation of the GHO stablecoin (AIP). When the stablecoin is created, it will be managed by the DAO.
Users of Aave DAO who want to mint GHO can do so by submitting any of the crypto tokens that are accepted on the site as collateral. In addition to serving as collateral, these deposits will yield Aave. Borrowers who take out GHO stablecoin loans will be charged interest according to the protocol.
As with MakerDAO’s dai, Aave intends for GHO to act as an overcollateralized stablecoin (DAI). This indicates that more GHO tokens will be created than the value of the coin that is deposited. Stani Kulechov, the founder of Aave, previously stated that the project would try to promote natural GHO adoption on Layer 2 of Ethereum.
Aave will join a small group of MakerDAO and DeFi stablecoin issuers by launching a stablecoin.
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